Question
You are an IT management specialist and three jobs in three different companies have been offered to you. You find the salaries and work environments
You are an IT management specialist and three jobs in three different companies have been offered to you. You find the salaries and work environments of all three positions equally attractive. However, you are concerned about job stability, which depends on the profitability of the company. You prefer the job that is more likely to be maintained in the coming year.
The first company produces a product that is mainly for export (e.g., an international MBA program that holds classes in other countries, but it is based in the U.S. and staffed by U.S. faculty). The second one offers products that are used only in investment projects (e.g., a construction company). The third company operates only in the domestic market for non-durable consumer products (e.g., a domestic restaurant chain).
If things were to continue as in the past year, all three companies would be equally profitable next year and offer you the same job security. However, you expect some changes. In particular, you believe that the government is likely to increase its expenditures next year. You examine the Fed's policies and conclude that it will reduce the money supply and, thus, raise the interest rates, with the net effect of the two policies keeping the aggregate real income of the economy constant. Under this scenario, given other things remain the same, which job is likely to becomerelativelymore secure next year?
a)The export company job.
b)The consumer good company job.
c)The investment good company job.
d)Both the jobs in the export and investment goods companies will definitely be relatively more secure than the consumer good company job.
e)Both the jobs in the export and consumer goods companies will definitely be relatively more secure than the investment good company job.
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